DislikedMartingale Strategy has been very much misunderstood by a lot of people left and right. Though the principle of Martingale is to keep betting until you win, many fails to understand that you cannot do this indefinitely. However with Proper Money Management, you can.
Another explanation to Martingale is a simple normal trade any guru would teach. Assume you studied the chart and placed a LONG; a disciplined trader would place Stops and LIMIT. When you lose, you study the chart again and trade according to what the chart would say. In this example, you are actually a Martingale - because you went back to trade again. Gurus would teach you to trade conservatively such that you dont lose your account in a trade or 10. Well, so is Martingale!
In my experience, Martingale is an exercise in Absolute Money Management. You enter your position such that you survive. Some Guru would teach you to survive 10 bad trades, some teaches to survive 20 trades, etc.
Below chart, I changed my survival settings from 15 to 75 and the slope of growth showed a smoother climb. Check the huge spikes around 2500 and 3500 trades and check the growth onward as concrete result. There is one setting that extends it all the way to 150 to survive.
Numeral, my GRID MARTINGALE strategy is same/similar to what you will find at www.forex-tsd.com.
* I am not using any "STOP and REVERSAL" type Martingale - this is prone to "Stop Hunting" and in my study dangerous. No Broker can Hunt your Stop if there is not STOP.
* I first double the lottage every x pips distance and set the TP 5-10 pips above the average price to ensure it always end with an average WIN.
* Then I change the lottage growth rate from x2 to x1.1 at a smaller grid distance; each turn, the average price and TP level would increase; I get more trades positions made, but the lot growth curve is controlled and almost linear such that, it can survive far more than any prolific rally/unwinding in the market.
Sorry, I cannot share the code. It was commission a year ago and though I am the author, I am not at liberty to share. I can share the principle which is Money Management.Ignored
BK, no matter how successful it has been for you so far, obviously one day it will hurt your account.
At this rate of account growth, in a few weeks Burgerking can take his initial million bucks off the table, and continue trading with the market's demo money at zero risk
Burgerking: Thanks for the description. Very intriguing results.
- #23
- Feb 9, 2008 7:49am Feb 9, 2008 7:49am
- | Commercial User | Joined Dec 2007 | 1,927 Posts
It's not quite so obvious to me. Its early days yet, but so far the max drawdown % is not bad, especially considering the number of trades.
At this rate of account growth, in a few weeks Burgerking can take his initial million bucks off the table, and continue trading with the market's demo money at zero risk
Burgerking: Thanks for the description. Very intriguing results.
I respect BK as a trader and a valuable member of this forum, so I'm not gonna knock him even though what he's saying is contrary to my beliefs. Anyway, as the saying goes, only time will tell...
- #24
- Edited 12:36pm Feb 9, 2008 9:34am | Edited 12:36pm
Martingale Strategy has been very much misunderstood by a lot of people left and right. Though the principle of Martingale is to keep betting until you win, many fails to understand that you cannot do this indefinitely. However with Proper Money Management, you can.
-
Below chart, I changed my survival settings from 15 to 75 and the slope of growth showed a smoother climb. Check the huge spikes around 2500 and 3500 trades and check the growth onward as concrete result. There is one setting that extends it all the way to 150 to survive.
Numeral, my GRID MARTINGALE strategy is same/similar to what you will find at www.forex-tsd.com.
* I am not using any "STOP and REVERSAL" type Martingale - this is prone to "Stop Hunting" and in my study dangerous. No Broker can Hunt your Stop if there is not STOP.
* I first double the lottage every x pips distance and set the TP 5-10 pips above the average price to ensure it always end with an average WIN.
* Then I change the lottage growth rate from x2 to x1.1 at a smaller grid distance; each turn, the average price and TP level would increase; I get more trades positions made, but the lot growth curve is controlled and almost linear such that, it can survive far more than any prolific rally/unwinding in the market.
Sorry, I cannot share the code. It was commission a year ago and though I am the author, I am not at liberty to share. I can share the principle which is Money Management.
I need to be your friend!
All you say, it´s exactly what i´m looking for. You r so right.
Some mathematics can prove what u say, with sampling.
I´m looking for Grid Martingale and will try to undestand this multiply by 1.1.
